Interested to Buy Any Domain ? << Click Here >> for more details...
what is the difference bitween Consolidated and Parent
Companies?
- 2 Answers
- 17118 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answer Posted / viswanatha
onsolidated f/s like combined f/s sum up the reporting entities or subsidiaries transactions into a total.
The difference is that consolidated f/s will eliminate transactions where subsidiary entities bought and sold goods or loaned each other money. For example lets say we have Parent company P and subsidiary companies S and T. S sells 1,000 widgets to T for 10 each = $10,000. S would record revenue of $10,000 and T would record expense of $10,000. However when P consolidates the f/s P would eliminate that sale as an inter-entity transaction, if not, then revenue and expenses would be over stated by $10,000. P is really just moving money from one pocket to another, there is no sale where P actually gains real income.
Hope this was helpful.
| Is This Answer Correct ? | 6 Yes | 0 No |
Post New Answer View All Answers
Explain me have you ever heard about tds, what it is?
rate of vat on gold purchase local & o.m.s. & rate of % in sale local & o.m.s.
how to calculate vat,pf,esi,service tax in corporate firm
what is difference between budgeting and Forecasting
WHAT ARE THE LIMITATIONS FACING ACCOUNT CONCEPTS AND CONVENTIONS?
Tell us what is your proudest accomplishment?
What is meant by public accounting?
Hi sir, Our appointed one agent for sales promotion activities. This agent doing the job "canvas of our product". My quires 1)it is eligible for service tax and how to accounted. 2) this transaction is direct expenses or direct expenses? Pl suggest me
In a housing society accounting if a defaulter having dues consisting of principal amount and simple interest, pays a part amount whether the received amount should be adjusted first against the interest dues and accordingly reduce the balance principal dues or adjusted only against the principal amount, allowing outstanding simple interest to contineously increase/
What are control ledgers?
Pass the journal entry: rent outstanding
how to calculate basic to gross salary
What is creative accounting?
In South Africa , the current rate for value added tax is ?
i need clarification about tds will be calculate before deductions or after deductions on gross salary+incentive
